Singapore agrees £87m deal for Baltic Exchange

Singapore Exchange (SGX) said it agreed terms to buy The Baltic Exchange in London in a recommended £87 million offer after a period of extensive consultation with Baltic’s shareholders.

The Baltic Exchange produces indexes for global shipping rates.

Under the proposed acquisition, Baltic Exchange shareholders would receive £160.41 in cash for each Baltic Exchange share and £19.30 per share in a special cash dividend.

Singapore Exchange has received irrevocable undertakings to vote in favour of the acquisition from the Baltic Exchange directors and Baltic Exchange shareholders representing 74% of the firm’s existing issued share capital.

The deal must be approved by at least 75% of Baltic shareholders.

The deal should close towards the end of November 2016, subject to shareholder, regulatory and court approvals.

Loh Boon Chye, CEO of SGX, said: “We are delighted to have received such significant Baltic Exchange shareholder support for this transaction.

“We look forward to working together with the Baltic Exchange to develop new products, benchmarks and services to the benefit of Baltic Members, SGX shareholders and the shipping community worldwide.”

Guy Campbell, chairman of the Baltic Exchange, said: “The Proposed Acquisition will accelerate the growth and development of the Baltic Exchange beyond what it could achieve on its own.

“Already a trusted business partner, SGX has committed to retaining the Baltic’s ethos as a membership organisation, retaining our London headquarters and further consolidating the Baltic’s value, influence and reach within the global shipping community.

“Following extensive consultations with stakeholders, over the past few months, the board believes that SGX’s offer is in the best interests of Baltic Exchange shareholders, members, panellists, employees and of the broader London maritime hub, from where it will continue to be based.”

Jefferies International Ltd is acting as financial adviser to SGX, and Nomura International is acting as financial adviser to the Baltic Exchange.